What is the ISO HO-3 Form?
What is the ISO HO-3 Form?
The ISO HO-3 form (ISO HO 00 03 10 00) is the standard homeowners insurance policy published by Insurance Services Office, Inc. Most personal lines property carriers use it as the base form for owner-occupied single-family homes in Georgia and across the country.
What is the structure of the HO-3?
The form is organized into two sections and six coverage parts:
- Coverage A – Dwelling: covers the structure of the home on an open-perils basis, meaning all causes of loss are covered except those specifically excluded.
- Coverage B – Other Structures: covers detached garages, fences, and other structures not attached to the home.
- Coverage C – Personal Property: covers the homeowner’s belongings on a named-perils basis, meaning only the causes of loss specifically listed in the policy apply.
- Coverage D – Loss of Use: covers additional living expenses when the home is uninhabitable after a covered loss.
- Coverage E – Personal Liability: covers the homeowner’s legal liability for bodily injury and property damage to others.
- Coverage F – Medical Payments: covers minor medical expenses for guests injured on the property, regardless of fault.
Section II encompasses Coverages E and F and is where the business pursuits exclusion applies to rental activity.
How does the HO-3 compare to HO-4 and HO-6?
The HO-4 (renters policy) provides personal property coverage and liability coverage but no structural coverage, because the tenant does not own the building. The HO-6 (condo unit-owners policy) covers the interior of a condo unit plus personal property and liability. Neither the HO-4 nor the HO-6 covers a standalone dwelling structure the way Coverage A does on an HO-3. For example, a condo owner whose unit floods due to a burst pipe can file an HO-6 claim for interior finishes, but Coverage A on the building shell belongs to the condo association’s master policy, not the unit owner.
Why does it matter for short-term rental hosts?
A standard HO-3 is written for owner-occupied personal residential use. When a homeowner lists the property on Airbnb or VRBO, two issues arise within the HO-3 structure. First, Coverage C uses named-perils language for contents, meaning damage from unlisted causes is excluded. Second, Section II’s business exclusion can remove liability and medical payments coverage once rental income exceeds $2,000 from the insured address in the prior 12 months. For example, a homeowner who earns $3,000 in Airbnb rental income in one year may find that Coverage E liability no longer applies to a guest injury claim filed on the standard HO-3 form.
Understanding the base form is the starting point for identifying where coverage gaps exist for hosting activity. For more on how Georgia homeowners policies respond to Airbnb use, see Does homeowners insurance cover Airbnb in Georgia?
A coverage review can explain how the HO-3 form applies to your specific policy. Request a coverage review.